dccc2012 revised final economic impact study presentation
TRANSCRIPT
DC Caribbean Carnival:
Economic Impact Study 2011
Yuvay J. Meyers, Ph.D.
Debby Lindsey-Taliefero, Ph.D.
Allison J. Morgan, Ph.D.
Lynne J. Kelly, Ph.D.
Howard University School of Business
Roadmap
• Background
• Study Overview
• Survey Results – Patrons
• Survey Results – Business Owners
• Financial Analysis
• Final Recommendations
Background
• The DC Caribbean Carnival, Inc. was started to
celebrate Caribbean culture in Washington
metropolitan area in 1993.
• Flagship Event - DC CARNIVAL™ Extravaganza
Parade and Festival
Approximate annual attendance - 400,000 people
Parade – live performances and bands
International Marketplace, “DE SAVANNAH”
Background
• DC CARNIVAL™ is centered on Georgia Avenue in
the District of Columbia.
• The District benefits economically and culturally
from the celebration.
• The event also serves to strengthen community ties,
promote social harmony, as well as foster
multiculturalism.
Study Overview
• DC Caribbean Carnival, Inc. charged the Howard
University School of Business (HUSB) to quantify
the economic impact of the DC Caribbean Carnival.
• Data collection was carried out on June 25, 2011
during the Carnival.
Information gathered from both Carnival patrons and
business owners.
Study Overview – Research Tasks
Three major tasks including:
• A survey of event attendees focusing on the specific economic
contribution to the District of Columbia.
• A survey of local small businesses focusing on the economic
revenues earned during that event.
• An economic impact assessment, which involves an evaluation of
the direct contribution of the carnival attendees on the District of
Columbia.
Study Overview – Research Tasks
The goal of the study was to provide the following:
• Estimate of the expenditures of the patrons attending the 2011 Annual DC
CARNIVAL™.
• Estimate of the incremental sales tax revenues generated by 2011 Annual
DC CARNIVAL™.
• Estimate of the business revenues generated by 2011 Annual DC
CARNIVAL™.
• Estimate of the incremental business tax generated by 2011 Annual DC
CARNIVAL™.
Study Overview – Data Collection
• Participants
685 patrons
50 business owners
• Survey
Hard copy survey administration
No financial compensation
Participants entered to win an Apple iPad
Survey Results
• Key results summarized for patron survey and
business owner survey.
Survey Results - Patrons
• The majority of Carnival Patrons are local to Washington metropolitan area.
Survey Results - Patrons
• The majority of Carnival Patrons attended the Carnival with family and/or friends.
Survey Results - Patrons
• Many patron attended the Parade and Marketplace while at the Carnival.
Survey Results - Patrons
• The anticipated spending for the Carnival was on average less than $50.
Survey Results - Patrons
• Carnival Patrons reported being positive comments in terms of satisfaction with the Carnival more frequently.
Survey Results - Patrons
• The most frequently mentioned method to improve satisfaction at the Carnival was to extend the Parade.
Survey Results - Patrons
• The primary information sources for the Carnival were by Friends/Family and Word of Mouth.
Study Results – Business Owners
• Most of the business owners found an increase in customers during the Carnival.
71.7%
28.3%
During the DC Carnival, did your business receive any additional customers?
Yes No
Study Results – Business Owners
• Average customer expenditures during the Carnival was $50 or less.
38.8%
32.7%
20.4%
2.0%
2.0%
2.0%
2.0%
0.0%
0.0%
0.0%
0.0%
$10 or less
$11 to $25
$26 to $50
$51 to $75
$76 to $100
$101 to $200
$201 to $300
$301 to $400
above $400
$301 to $400
More than $400
0.0% 20.0% 40.0% 60.0%
On average how much did each customer spend during the DC Carnival?
$10 or less
$11 to $25
$26 to $50
$51 to $75
$76 to $100
$101 to $200
$201 to $300
$301 to $400
above $400
$301 to $400
More than $400
Study Results – Business Owners
• The majority of Business owners felt the Carnival helped the Georgia Avenue corridor.
91.8%
8.2%
Do you think the DC Carnival help or hurt business on Georgia Avenue corridor?
Help
Hurt
Study Results – Business Owners
• All business owners believed the Carnival should continue.
100.0%
0.0% 0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Yes No
As a local business, do you think the DC Carnival should continue?
Yes No
Study Results – Business Owners
• Average annual business income reported was typically $80,000 or less.
18.6%
9.3%
14.0%
18.6%
20.9%
18.6%
0.0% 10.0% 20.0% 30.0%
Less than$20,000
$20,00 to$34,999
$35,000 to$49,999
$50,000 to$64,999
$65,000 to$79,999
$80,000 orgreater
What is your business income?
Less than $20,000
$20,00 to $34,999
$35,000 to $49,999
$50,000 to $64,999
$65,000 to $79,999
$80,000 or greater
Study Results – Business Owners
• Satisfaction with Carnival activities was typically positive from business owners.
0
0
1
2
3
2
2
1
3
8
5
5
8
10
8
18
13
16
0 5 10 15 20
Parade
Marketplace
Total Event
Please tell how satisfied you were with 2011 DC Carnival?
Completely satisfied
Mostly satisfied
Somewhat satisfied
Neither satisfied or dissatisfied
Somewhat dissatisfied
Mostly dissatisfied
Completely dissatisfied
Financial Analysis
• Includes the following analyses:
Cost Benefit Analysis
Estimated Patron Expenditures
Generated Sales Tax Revenues
Financial Analysis - Assumptions
• Washington DC government provides $30,422 in
support to the Carnival.
• The Carnival Board is required to pay $338,700 in fees
to the Metropolitan Police Department for enforcement.
• The total event cost is $584,483.
• Comparisons made with the Toronto Carnival,
Scotiabank Caribana.
Cost Benefit Analysis
• The DC CARNIVAL™ makes $39.48 for each dollar spent and produces approximate sales tax revenues from the attendees of $1,298,230.00.
DC Caribbean
Carnival 2011
Toronto Scotiabank
Caribana 1998
Budget* $584,483 $416,250
Number of Attendees 400,000 1,200,000
Attendee Expenditure $ 21,637,166 $198,000,000
Cost-Benefit Ratio***(Expenditure/Budget) $37.02 $475.68
SalesTaxes Earned† $1,298,230 $25,740,000.00
Carnival Estimated Patron Total Expenditure and
Generated Sales Taxes by Number of Attendees
• The Caribbean Carnival provides increasing returns scale to the Washington, DC economy on a whole.
Number of Attendees 400,000 300,000 200,000
Number of Patrons by Category
Family and Friends 111,839 83,879 55,919
Group 72,836 54,627 36,418
Individual 80,000 60,000 40,000
Total Patrons 264,675 198,506 132,337
Average Household Size, DC 2.21 2.21 2.21
Average Expenditure $ 81.75 $ 81.75 $ 81.75
Total Expenditures $ 21,637,166 $ 16,227,875 $ 10,818,583
Cost- Benefit Ratio $ 37.02 $ 27.76 $ 18.51
Sales Taxes Generated @ 6% Tax Rate $ 1,298,230 $ 973,672 $ 649,115
Estimated Incremental Revenues by
Number of Attendees • The estimated incremental revenue per business was $751.52. Depending
on the number of business along the DC Caribbean Carnival parade route or at the marketplace, the incremental revenues range from $75,152 (n=100 businesses) to $300,608 (n=400 businesses).
Consumer's Average Expenditure Per Business $ 26.84
Average Additional Customers 28
Estimated Incremental Revenues Per Business $ 751.52
Number of Business 100 200 300 400
Total Estimated Incremental Revenues along DC Caribbean
Carnival Parade Route $ 75,152 $ 150,304 $ 225,456 $ 300,608
Final Recommendations
The DC Caribbean Carnival provides significant
economic value to the Washington, DC economy.
Additional key recommendations are
highlighted:
Final Recommendations
1. To encourage the expansion of the Carnival,
advertising of the event earlier and using larger
outlets may help to yield a wider attendee base.
2. The DC Carnival is a family event. Therefore,
materials promoting the Carnival as well as
activities chosen to supplement the Carnival
should bear this in mind.
Final Recommendations
3. This is an opportunity for corporate sponsorship.
Corporations with a local presence should be made aware of
the opportunities available to sponsor the DC Carnival and
support this cultural event in the District.
4. Attendees are spending the majority of their money on food
and beverage items. Getting additional vendors to
participate in sales of these items may be able to encourage
additional individuals to attend the Carnival.
Final Recommendations
5. The age group of Carnival participants is on
average between 18 and 45. The Carnival might be
attractive to individuals in other age brackets if
there were designated places to sit.
6. The carnival committee should continue to ensure
that the event remains an affordable family
friendly event.
Final Recommendations
7. Extending the parade route could be of great
benefit to attendees and businesses.
8. Some participants felt that law enforcement was
too aggressive to attendees. Possibly utilizing a
civilian security detail could minimize part of this
problem. Or working with the city and the police
force on cultural sensitivity may be necessary.
Final Recommendations
9. Viral marketing campaigns should be a key
method of event advertising moving forward.
10. Working with the local businesses before the
event is essential.
HUSB Research Team & Contact
Information Yuvay Meyers, Assistant Professor • [email protected] • 202-806-1553 (w) Debby Lindsey-Taliefero, Associate Professor • [email protected] • 202-806-1568 (w) Allison Morgan, Assistant Professor • [email protected] • 202-806-1605 (w) Lynne Kelly, Assistant Professor • [email protected] • 202-806-1658 (w)